SAN DIEGO (1/22/16)--Vince Nowicki, vice president of real estate originations at Mission FCU, San Diego, discussed the challenges presented by the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures (TRID) rule in an interview with Mortgage Report.
In the interview, Nowicki was asked what biggest regulation challenges credit unions are currently facing and how are they working to ensure compliance and avoid penalties.
“It’s gotta be the new TRID regulations,” Nowicki said. “It’s tough on everybody. The smaller organization you are, the more difficult it is to simply hire compliance people. If you’re a Bank of America, it’s easy to say, ‘We’re going to bring in a half-dozen compliance people to attack this issue.’ If you’re a small credit union in San Diego, you’re kind of on your own.”
Nowicki said TRID has changed the way credit unions do business on a day-to-day basis as mortgage lenders. “You don’t have the personnel you need to do the job,” he said.
Closing disclosures are often put together by senior employees, who are learning new processes with less personnel. “It’s not the most efficient way to do business, so it kind of slows you down a little bit and it’s a little frustrating,” Nowicki said. “But we’re under the gun. We absolutely must comply with these regulations, it just makes life a little bit more challenging from the origination side of the loan process.”